Wednesday, May 31, 2017

Hanley Investment Group Arranges Sale of Single-Tenant NNN Walgreens in Oceanside, CA for $7.4 Million

Walgreens Oceanside
Kevin Fryman
OCEANSIDE, CA. - Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, arranged the sale of a single-tenant absolute net-lease Walgreens property located in north San Diego County at 3507 Cannon Road in Oceanside, Calif. 

The purchase price was $7.4 million, which represented a cap rate of 5.0 percent. 

Hanley Investment Group Executive Vice President Kevin Fryman, along with Ed Hanley, president of Hanley Investment Group, represented the seller, a private investor based in Beverly Hills, Calif. The buyer, a private investor from Northridge, Calif., was represented by Jason Flashman/Flashman Investment Group of Peak Commercial of Los Angeles.

“Investor interest in single-tenant retail buildings is still very strong, especially ‘daily needs’ driven type of retailers like drug stores,” said Fryman. “Daily needs and service-oriented retailers are thought to be more internet-resistant and can drive foot traffic to other shops in the shopping center.”

Ed Hanley
The market for Walgreens properties remains active as investors are attracted to investment grade rated companies with long-term leases,” added Hanley. Walgreens has a Standard & Poor’s rating of BBB.

Built in 2007, the 14,380-square-foot freestanding building with a drive-thru is located on a 1.64-acre pad within a former Ralphs-anchored shopping center that includes national tenants such as McDonald's, AutoZone and Pizza Hut. 

There are more than 15 years remaining on the Walgreens primary lease with ten five-year renewal option periods.

Walgreens has a 10-year history at this location and benefits from the strong demographics in the area and close proximity to two regional hospitals, a large retirement community and convenient freeway access, Fryman notes. “Over 42,000 cars per day travel through the signalized intersection of Cannon Road and Melrose Drive. Melrose Drive is a major north/south thoroughfare in the city of Oceanside.”

Fryman adds, “More than 280,000 people live within a five-mile radius of the property and have an average household income of over $79,000 within a one-mile radius.” 

Two regional hospitals are located less than five miles from Walgreens, Tri-City Medical Center and Scripps Coastal Medical Center. Walgreens is also near Ocean Hills Country Club, an active senior retirement community with over 1,600 homes.

Jason Flashman
“This transaction is another great example of the high demand for well-located single-tenant investments, specifically for credit retailers like Walgreens with a corporate guaranteed lease with investment grade credit,” said Fryman. 

“The absolute triple-net (NNN) lease offers zero landlord responsibilities since the tenant is responsible for the costs of real estate taxes, property insurance, and maintenance in addition to rent.”

“There has only been one other Walgreens that has traded hands in San Diego County in the last 12 months,” said Hanley. “According to CoStar, only eight Walgreens with more than 10 years remaining on their initial lease have sold in California in the last 12 months for an average cap rate of 5.35 percent compared to 13 transactions in the 12 months prior to that for an average cap rate of 5.03 percent.”

“With continued volatility in investments such as stock and bonds, investors are looking to high-quality single-tenant retail assets that require little to no maintenance,” said Hanley. “A single-tenant investment such as Walgreens provides long-term cash flow, with relatively low risk. As investors continue to look for security, we expect that the demand for these high-quality single-tenant investments will remain strong through 2017.”

For a complete copy of the company’s news release, please contact:

Anne Monaghan

HFF closes $12.175 million sale of Tiffany Square in Colorado Springs, CO

Tiffany Square Office Building, 6805 Corporate Drive, Colorado Springs. CO

Jules Sherwood
 DENVER, CO , May 31, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $12.175 million sale of Tiffany Square, a 184,219-square-foot office building in Colorado Springs, Colorado.

HFF marketed the property on behalf of the seller, a real estate investment trust, and procured the buyer, U-Haul Amerco Real Estate Company. 

Tiffany Square is located at 6805 Corporate Drive just off Interstate 25 in the Northwest submarket of Colorado Springs. 

The property has a large amenity base, including close proximity to Downtown Colorado Springs, the University of Colorado at Colorado Springs, Denver Tech Center and University Village Colorado, which is an 80-acre master-planned retail center.

  The two-story property is 74.6 percent leased to five tenants and also includes a 6.26-acre surface parking lot that is zoned for industrial development. 

The HFF investment sales team representing the seller was led by managing director Jules Sherwood.

For a complete copy of the company’s news release, please contact:

Kristen M. Murphy
Director, Public Relations
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 |

Shopoff Realty Investments Acquires 2.8-Acre Site to be Entitled for 60 Apartment Units Near Los Angeles, CA

William Shopoff
LOS ANGELES, CA, May 31, 2017 – Shopoff Realty Investments, a national manager of opportunistic and value-add real estate investments, announced today that it has acquired a 2.8-acre prime infill site in the Los Angeles suburb of Whittier, California. 

The company intends to entitle the property to allow for the development of a 60-unit apartment project.

An operational car wash is currently located on the site, which was acquired by a joint venture between Shopoff Realty Investments and Clearwater Communities for $5.5 million.

“There is an extremely limited supply of new housing in Greater Los Angeles, which makes this a significant development opportunity,” said Shopoff Realty Investments CEO William Shopoff. 

“Additionally, demand for new housing is high as the vacancy rate in this market has been tremendously low in recent years, averaging fewer than 40 new units annually.”

The site is located within two blocks of Presbyterian Hospital, which employs more than 2,600 healthcare professionals and support staff, providing further demand for housing.

“We’re eager to expand our geographic footprint to this municipality and look forward to the prospect it presents,” said John Santry, executive vice president of Shopoff Realty Investments’ Land Division. “The Whittier area’s lack of housing and strong demographics make it an especially attractive value-add opportunity, and a win-win for Shopoff and the local community.”

The acquisition presents a rare opportunity to acquire a value-add entitlement development in Los Angeles County within the multifamily sector. 

For a complete copy of the company’s news release, please contact:

Julie Leber
Spotlight Marketing Communications
949.427.5172, ext. 703

MVP REIT and MVP REIT II Announce Definitive Merger Agreement

Mike Shustek
LAS VEGAS, NV (May 30, 2017) – MVP REIT, Inc. and MVP REIT II, Inc. announced today that they have entered into a definitive merger agreement, pursuant to which MVP I will merge with and into a wholly-owned merger subsidiary of MVP II with the merger subsidiary continuing as the surviving entity.

The merger agreement was negotiated on behalf of MVP I by an independent special committee of MVP I’s board of directors and on behalf of MVP II by an independent special committee of MVP II’s board of directors. 

Each of the special committees recommended approval of the merger agreement to their respective boards of directors, each of which subsequently approved entry into the merger agreement.

“The MVP REITs are unique in that they invest solely in parking structures and facilities around the country, a compelling asset class that we believe provides us and our stockholders with tremendous upside opportunities,” said Mike Shustek, chairman and chief executive officer of MVP I, and president, chief executive officer and chairman of the board of MVP II.

“We believe that the merger of MVP REIT and MVP REIT II will create a company greater than the sum of its parts, and create greater opportunities for us to unlock greater value for our stockholders.” 

For a complete copy of the company’s news release, please contact:

Julie Leber
Spotlight Marketing Communications
949.427.5172, ext. 703

Meta Housing Corp. Completes $32 Million Arts-Focused Affordable Apartment Community in Glendale, CA

Kasey Burke
GLENDALE, CA, (May 30, 2017) – Meta Housing Corporation has completed ACE/121, a 70-unit affordable apartment community for artists and their families in Glendale, California.

The new apartment community integrates a variety of art amenities and was developed in partnership with the City of Glendale, the YMCA of Glendale and Western Community Housing, Inc.

“This project will support the ongoing revitalization of the region and serve as a catalyst for a designated Art & Entertainment district in Glendale,” says Kasey Burke, President of Meta Housing.

“In many cases, defining an Arts District can lead to gentrification and rent increases that drive artists out. However, the City of Glendale sought out a partner that could deliver a unique artistic experience while preserving affordability, which is exactly what we provided.”

ACE/121 is Meta Housing’s fifth Arts Colony project in Los Angeles, and its second to be open to non-senior residents.

Charmaine Atherton

            “We first began integrating the arts into our senior apartment communities,” he says.  

“We found that in doing so we could create environments that encourage creativity, collaboration, and engagement among residents. 

"This concept has since expanded into our other projects and serves as a catalyst for community development, connecting residents and the surrounding communities through art.”

Constructed on a 54,000 square-foot YMCA-owned site, the five-story ACE/121 apartment community incorporates an 800 square-foot professional-caliber art gallery, a visual arts room, a makerspace, two music rooms, and a dance studio, among many other amenities.

Chris Maffris, Senior Vice President at Meta Housing explains, “In addition to long-term affordable housing, artists need spaces for exhibition, collaboration, and creation, and tools for production. ACE/121 provides these. The art spaces belong to the tenants. The gallery is the tenants’ art collective. We’re very excited to see what this Civitas (a tenant-coined name for the gallery) produces.”

Financing for the project was provided by the City of Glendale Housing Authority, which provided $6.1 million, as well as Greystone & Co., and Bank of America, who served as the tax credit equity investor.

Charmaine Atherton, Senior Vice President, Community Development Banking at Bank of America Merrill Lynch says, “This is our 13th of 15 projects in partnership with Meta Housing, and we continue to find significant value in our work together. Bank of America Merrill Lynch is committed to investments that deliver deep social benefits to communities at large. 

"By seamlessly integrating the arts into this state-of-the-art development, we are able to support a burgeoning arts community and ensure that residents enjoy access to much-needed high-quality affordable housing.”

ACE/121 is located at 121 N. Kenwood Street in Glendale, California, and marks the 18th affordable housing project the City of Glendale has sponsored in the last 12 years. It is comprised of affordable one-, two-, and three-bedroom floor plans. In addition to its arts amenities, the apartment community also features a computer lab, tutoring area, and a tot lot.

The community was designed by the architects at Studio One Eleven of Long Beach, California. Non-profit organization EngAGE will serve as arts and programming service coordinator for the project.
For a complete copy of the company’s news release, please contact:

Miki (Conant) Akil /Lexi Astfalk
Brower, Miller & Cole
(949) 955-7940

Hospitality Asset Managers Association (“HAMA”) Hosts 2017 Global Summit in Dubai

 PICTURED:  From left--Theodor Kubak (HAMA Europe, president; Union Investment Real Estate, principal), Rene Beil (HAMA MEA, president; Beaufort Global Partners, managing director), Melissa Silvers (HAMA USA, president; SCS Advisors, principal) and Tasos Kousloglou (HAMA Asia Pacific, president; EVP - Asset Management, JLL Hotels & Hospitality, EVP of asset management)

                ATLANTA, Ga., May 31, 2017—Officials of the Hospitality Asset Managers Association (“HAMA”) today announced the successful conclusion of its third-annual 2017 Global Summit hosted in Dubai at the Jumeirah Emirates Tower. 

The presidents of the U.S., MEA, European and Asia Pacific chapters all were in attendance and met with Mauricio Ventura, the Costa Rican minister of tourism.

                “With hotel development remaining very active throughout the world, owners who wish to maximize their investments increasingly are realizing that asset management is a pivotal piece of the profitability puzzle,” said Melissa Silvers, president, HAMA U.S.A. chapter. 

Melissa Silvers
“HAMA has grown into a worldwide platform for asset managers to share best practices and educate themselves surrounded by their peers.   

"Our Certified Hotel Asset Management (CHAM) designation has become a highly sought after recognition that allows owners to find and retain the best asset managers in the business.

“his gathering allowed us to create a roadmap for our organization over the coming years, and we are confident that as we grow, the practice of asset management will grow in prominence in tandem with us.”

                The next meeting will take place in the Asian Pacific during Spring 2018, and the 2019 summit is scheduled to take place in China.

HAMA members are involved in asset management, acquisition, financing and disposition of hotels and resorts and are directly responsible for making decisions concerning capital investments, renovations, asset repositioning, operational policies and management selection. 

 Its U.S. members represent more than 3,500 hotels and resorts across every major brand, accounting for 775,000 hotel rooms, 250,000 employees, $40 billion in annual revenue and $3 billion in capital expenditures.

For a complete copy of the company’s news release, please contact:

620 Herndon Parkway, Suite 115 | Herndon, VA 20170
Main: 703-435-6293
Mobile: 703-864-5553

HFF arranges $239 million for development of Four Seasons Private Residences in Los Angeles

Rendering of Planned $239 Million Four Seasons Private Residences Los Angeles,
Los Angeles, CA

Doug Bond
LOS ANGELES, CA, May 30, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $239 million in financing for the construction of the Four Seasons Private Residences Los Angeles, a 59-unit, luxury, residential project that has begun construction in Los Angeles, California.

HFF worked on behalf of the developer, a partnership between Alcion Ventures and Genton Property Group (GPG), to place the three-year construction loan through funds managed by The Children’s Investment Fund Management Limited. Construction is expected to be completed in mid-2019.

“In an environment where construction financing is currently difficult to obtain, we are very excited to have capitalized the development of the Four Seasons Private Residences Los Angeles,” said senior managing director Doug Bond.  “The superior sponsorship, iconic branding and curated design of this unique development attracted a best-in-class lender to the project.”

The Four Seasons Private Residences will be situated across from the Four Seasons Los Angeles at Beverly Hills near the intersection of Third Street and Wetherly Drive. The property’s centralized location provides access to nearby Cedars-Sinai Hospital, the Beverly Hills “Golden Triangle” and the North Robertson Boulevard shopping district. The 12-story, LEED-certified tower will comprise 59 custom for-sale homes with interiors inspired by California Modern master Richard Neutra.

Jonathan Genton
“This project will define luxury living in Los Angeles, and it was critically important to our investors and international pool of buyers that we eliminated every potential obstacle before beginning primary construction,” said GPG founding partner Jonathan Genton. “This funding ensures the Four Seasons Private Residences Los Angeles will meet its full potential as one of the region’s most sought-after properties.”

The building, which is designed by architecture firm CallisonRTKL, will offer a variety of floorplans with luxury features and amenities, including floor-to-ceiling, retractable glass walls; open-concept indoor/outdoor living and dining spaces; professional-grade gourmet kitchens; spa bathrooms with soaking tubs, separate glass-walled showers and dual-sink, marble-topped vanities; rooftop gardens; and stunning views of area landmarks, from the Hollywood Hills to the downtown skyline.

Dan Cashdan

Property features include a heated outdoor lap pool and poolside cabanas; state-of-the-art fitness center equipped with spin, cardio and weight equipment as well as private training and yoga rooms; private spa treatment rooms; IMAX theater for private movie screenings and sporting events; game room; library; and entertaining kitchen and bar.

Managed by the Four Seasons, the private residences will have hotel-inspired amenities with an executive chef, concierge, in-residence dining and spa treatments in addition to a variety of services, including housekeeping, butler service and in-residence personal chefs.

The HFF debt placement team representing the borrower was led by senior managing directors Doug Bond and Dan Cashdan as well as managing director Mark Wintner.

“We are honored to have represented Alcion Ventures and GPG in capitalizing what will become the premier residential tower in Los Angeles,” Cashdan added.

For a complete copy of the company’s news release, please contact:

Olivia Hennessey
Public Relations Specialist
HFF | 9 Greenway Plaza, Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 |